7-Eleven drops Citgo as supplier of gasoline

THE ASSOCIATED PRESS

Published 10:00 pm, Wednesday, September 27, 2006

DALLAS -- 7-Eleven Inc. dropped Venezuela-owned Citgo as its gasoline supplier after more than 20 years as part of a previously announced plan by the convenience-store operator to launch its own brand of fuel.

7-Eleven executives said Wednesday that the decision was partly motivated by politics.

Citgo Petroleum Corp. is a Houston-based subsidiary of Venezuela's state-run oil company, and 7-Eleven is worried that anti-American comments made by Venezuelan President Hugo Chavez might prompt motorists to fill up elsewhere.

Chavez has called President Bush the devil and an alcoholic. The U.S. government has warned that Chavez is a destabilizing force in Latin America.

"Regardless of politics, we sympathize with many Americans' concern over derogatory comments about our country and its leadership recently made by Venezuela's president," 7-Eleven spokeswoman Margaret Chabris said.

"Certainly Chavez's position and statements over the past year or so didn't tempt us to stay with Citgo," she added.

Instead, 7-Eleven, which sells gasoline at 2,100 of its 5,300 U.S. stores, will now buy fuel from several distributors.

The convenience-store chain has 13 stores in Seattle that sell gas, according to its Web site.

Chabris said 7-Eleven's decision to sell its own brand was based on many factors, including Citgo's decision this summer to stop supplying stations in parts of Texas and other states to focus on retailers closer to its refineries.

But 7-Eleven had been considering creating its own brand of fuel since at least early last year, and some analysts suggested 7-Eleven may now be hyping the political angle as a way to curry favor with U.S. consumers.